The ________ interest rate is adjusted for expected changes in the price level
A) ex ante real
B) ex post real
C) ex post nominal
D) ex ante nominal
A
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The supply of and demand for bank reserves determines the
A) Treasury bill rate. B) prime rate. C) discount rate. D) federal funds rate.
Which of the following statements about the Earned Income Tax Credit Program (EITC) program is FALSE?
A) On net the EITC discourages work by low- or moderate- income earners more than it rewards work. B) It provides rebates of Social Security taxes to low-income workers. C) Recipients who receive benefit payments under Social Security are also eligible for SSI. D) It is the largest poverty reduction program in the U.S..
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.
In general, as a person includes fewer stocks and more bonds in his portfolio,
a. both risk and expected return rise. b. risk rises but expected return falls. c. risk falls, but expected return rises. d. both risk and expected return fall.